OSBD Newsletter - January 30, 2013

OSBD Newsletter - January 30, 2013

House non-appropriated subcommittee holds first meeting

Author:

Emily Summars, eCapitol News

Date:

01/29/2013

(eCap) The House Appropriations and Budget Subcommittee on Non Appropriated Agencies held its first meeting Tuesday. Chair Sally Kern said the committee is "charting new ground" and, even though she does not know what bills the committee will be assigned, Kern said she hopes members wonder where the money comes from, goes to and the process involved.

State Bank Commissioner Mick Thompson gave an overview of the constitutional agency the Banking Department. Thompson reported to the committee about the Department's duties, what it examines and the department's finances.

Thompson said in FY11, the department oversaw $40 billion in total assets against which assessments are charged, "which is important because you [state government] get 10 percent of that for the General Revenue Fund."

"Our main goal is to protect the consumers," Thompson said. "Our bankers that went through the 80s oil bust are a little smarter than other states so we didn't experience many bank failures like others in the country."

With approval from the board, the department has lowered the assessment rates for small community banks, totaling a reduction of 37 percent in the past two years, Thompson said.

"Hopefully by returning it back to them, it will go back and impact the community," Thompson said.

Thompson touched on the department's efforts concerning Basel III rules stating it is "the biggest killer for community banks. The biggest detriment to community banking is federal regulation and overreaching of regulations."

Vice-Chair David Brumbaugh, R-Broken Arrow, asked Thompson how the department does not have any debt, leasing bills and other factors that are sometimes a financial worry.

"I use the analogy of a wheel and a spoke," Thompson said. "You have to have quality examiners to understand how the banks work. We put a quality product out and we've converted more than 50 banks, which increase our assets and so it continues."

Kern thanked the commissioner for his time and said if he ever needed help with anything, to let the committee know.

"Well, as a matter of fact there is," Thompson said. "We would like the committee's support pertaining to HB1599.

HB1599 amends language relating to banks and trust companies. Thompson said the bill helps clean up language regarding the department.